Cramer - Sell Oil Stocks
Jim Cramer told viewers of Monday’s CNBC “Mad Money” TV show to sell oil stocks. He explained current events like the Iran focus in the media, the Georgia/Russian conflict, and the tropical storm in the Gulf of Mexico would have normally taken oil to new highs past $150 a barrel. However, that isn’t the case right now, oil is trading at $110 a barrel and possibly going to trade even lower. He said this disconnect shows that supply and demand is moving the oil markets and at $4.50 a gallon, the demand isn’t there. Cramer told viewers to scale out of the oil stocks like Transocean (RIG), Rowen Drilling (RDC), Chesapeake Energy (CHK), XTO Energy (XTO and Ultra Petroleum (UPL). Join the fastest growing community of small cap investors at Stockhideout.com
August 18th, 2008 at 5:24 pm
Chesapeake Energy, a NATURAL GAS company is down from 74 to 44, and NATURAL GAS, which is as cheap as it ever gets relative to CRUDE OIL should be sold because CRUDE OIL and GASOLINE doesn’t act well?
Cramer is a moron with a history of pumping up companies and them telling investors to dump them AFTER they’ve fallen huge. He did this with Annaly Mortgage, and now he’s doing it with Chesapeake.
He can’t possibly be as retarded as he seems. I can only assume he’s got an offshore trading account and is counter trading his recommendations.
August 19th, 2008 at 7:20 am
I like the offshore account idea
Well - Where are oil prices going to fall to?
Cheers
Banjo Smyth
August 19th, 2008 at 1:32 pm
Oil prices have found a peak and are in search of a floor. $100 is an obvious target. The more salient point, since I no longer trade oil (or Nat gas, post-Amaranth) futures, is what are the stocks discounting. E&P stocks seem to be discounting $80 oil and $6 Nat Gas. Having sold a little early into the frenzy, I’m following Boone Pickens back in to Gas stocks right here, and will look to buy oil producers when the futures stop knifing down.